From Nasdaq: 2024-08-03 04:49:00

Tesla (NASDAQ: TSLA) is experiencing challenges with softening demand and increased competition, resulting in a 43% decrease in its stock value from its peak in 2021. Despite cutting prices by 25.1% last year to boost sales, Tesla’s earnings per share dropped by 46% in Q2 2024.

Even with record deliveries of 1.8 million EVs in 2023, Tesla’s growth rate slowed to 38%, consecutively for two years. Sales haven’t significantly increased despite price reductions, leading Tesla to plan the production of a low-cost EV model priced at $25,000 to attract more consumers, especially with the entry of cheaper EVs in the market.

Apart from its EV business, Tesla is also focused on developing autonomous driving software, humanoid robots, and expanding its solar energy and battery storage divisions. Analysts predict potential future revenue growth in these areas could lead to a surge in Tesla stock value. Consider investment recommendations carefully before buying Tesla stock.

The Motley Fool Stock Advisor team highlighted the 10 best stocks for investment opportunities, with Tesla not making the list. The service provides valuable insights, portfolio-building guidance, and up to two new stock recommendations monthly. Investors should take note of past success stories where investments grew significantly over time. Consider exploring other potential stocks for higher returns.



Read more at Nasdaq: 1 Unfavorable Trend Explains Why Tesla Stock Is Trading 43% Below Its All-Time High